Determination of the Group’s strategy is based on an assessment of options that will enable the sustainable generation of value for all stakeholders, ensuring flexibility and focusing on risk mitigation.

Key to this is the assessment of the external environment and its evolution. To determine the framework in which we operate, we conduct in-depth scenario planning in order to be prepared to seize opportunities and manage future risks and uncertainties in the most robust manner possible.
This analysis of what could happen in the external landscape is key to defining the Group’s positioning within that landscape. We then define our long-term ambitions and design the strategic options that characterize our long-term planning.

In recent years, the increasing complexity of the rapidly changing context in which we operate has made it so that the process of defining the Group’s strategies has also evolved in order to capture as much of this dynamism as possible, so as to make it an enabling factor in the definition of goals.

Today, this process is organized into the following main activities:

• Strategic Dialogue: a continuous process of active dialogue throughout the year and across all Group functions, through which the strategic topics for the evolution and growth of the Group are identified, analyzed, discussed and addressed. This dialogue is part of a strategic design phase, where communication among executives makes a valuable contribution to developing new strategic options, with an emphasis on the need for cultural or organizational change and synergies between businesses.
• Strategic Planning: this process, which is driven on an ongoing basis by feedback from the strategic dialogue, transforms the information to be processed into quantitative models in order to establish an overview of the industrial, economic and financial evolution of the Group, supplemented by possible active portfolio management. The evaluation of strategic options over a time horizon extends beyond that used in industrial planning, with (i) the definition and the quantitative and qualitative development of alternative macroeconomic, energy and climate scenarios against which overall strategy can be assessed, and (ii) analyses based on stress testing for various factors, including the evolution of the industrial sector, technology, competitive structure, climate variables and policies.
• Long-term positioning: consistent with the analyses and decisions described in the previous points, and basing on our ambitions for environmental and economic-financial sustainability and the opportunities to be seized on the market, the Group’s positioning is defined with regard to the long-term industrial strategy.
• Analysis of ESG factors and assessment of materiality in the field of sustainability: Enel assesses ESG issues in order to identify and evaluate priorities for stakeholders, conducting a double materiality analysis to determine the material issues that support the definition of the objectives to be included in the strategic sustainability planning. This analysis takes into consideration the ESRS standards of the European Sustainability Reporting Directive (CSRD) as well as numerous other international standards (for example, the Global Reporting Initiative - GRI, SASB, SDG Compass, etc.).

The strategy of the Enel Group has proven its ability to create sustainable long-term value, fully integrating the themes of sustainability and close attention to climate change issues while simultaneously ensuring increased profitability for stakeholders.
The Group is among the leaders guiding the energy transition through the decarbonization of electricity generation, digitalization of distribution grids and the electrification of final consumption, which represent opportunities to create value and to accelerate achievement of the Paris Agreement objectives and the Sustainable Development Goals set by the United National in the 2030 Agenda. The Group also supports the principles of a just transition, as defined in the Just Transition Guidelines of the International Labor Organization (ILO), so that no one is left behind, in light of the social impact that the decarbonization strategy entails, while ensuring respect for human rights throughout the value chain.